MOL’s raises forecast after 48% profit surge
Tokyo-based Mitsui O.S.K. Lines has raised its full fiscal year 2007 outlook following a 48 percent jump in net income for its first quarter ended June 30.
MOL’s consolidated net income (container shipping, bulk shipping and all other group activities) for the three-month period was Yen34 billion ($285 million), up from Yen23 billion a year ago. Operating income climbed 84 percent to Yen59 billion ($495 million) while revenue gained 20 percent to Yen446 billion ($3.7 billion).
MOL’s improved results were in line with gains at compatriot carriers NYK and “K” Line, announced Thursday.
In the container shipping sector, MOL saw a 22 percent increase in revenue to Yen162 billion ($1.36 billion) with ordinary income improving to Yen1 billion ($9 million) from a deficit of Yen2 billion last year.
The carrier said the segment benefited from strong volume increases in the eastbound Asia-to-North America trade, where it achieved some rate increases after negotiations, as well as the westbound Asia-to-Europe market, where “freight rate recovery progressed.”
MOL is now predicting group net income of Yen145 billion, 11.5 percent above its original forecast, on 7.6 percent higher revenue of Yen1.83 trillion. For container shipping, MOL expects revenue of Yen682 billion (5 percent higher than first predicted) although it maintained its Yen10 billion ordinary income expectation.
“Forecast for trade volume/freight rates will remain firm, but soaring bunker prices will slow recovery of income,” MOL said of its box ship outlook for the year.